SBI, BOM Co Branded Credit Card Launched
At a time when most other banks are slowing down their credit card business, Pune-headquartered Bank of Maharashtra joined hands with State Bank of India Cards and Payment Services to launch a new co-branded credit card product suite for its customers.
“The credit card gives a sense of security for the customer but it is a challenge to run the business profitably,” said Diwakar Gupta, MD and CFO of State Bank of India. Gupta, who was CEO of SBI card business, said banks should not just push issuance of credit cards to achieve numbers but due diligence should be exercised to run the business profitably.
“After being in the credit card business for 13 years, SBI Cards and Payment Services as a standalone company had now made some profit,” Gupta said. The company declined to disclose neither the revenue nor the net profit. But he said about 30 per cent of the revenue came from late fee from the credit card holders.
The SBI BoM credit card is available in two variants — platinum and gold for the Bank of Maharashtra customers. The platinum card with an annual fee of Rs 2,999 offers 10 cash points for every Rs 100 spent on dining, departmental stores and international spends that amount to 2.5 per cent value back. It also gifts the new customer a basic fare voucher for a Kingfisher Airline return ticket on any sector in India and fuel surcharge waver across all petrol pumps.
The gold card with an annual fee of Rs 499 offers one cash point per Rs 100 spent and 2.5 per cent value back on purchases made at all departmental stores and groceries.
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